Faster trade settlements

Beginning in June, financial markets in Canada will adopt a faster system for settling securities trades.

The change, which will see most equity and bond trades settled in three days instead of five, will allow Canadian securities markets to remain competitive internationally; a similar change is being made in the U.S. The change results from a recommendation of the Group of 30 organization, a not-for-profit body with offices in Washington and London which provides advisory services to governments internationally on fiscal and economic policy matters.

The recommendation grew out of a study of global settlement systems undertaken by the Group following the market crash of October, 1987.